On April 3, 2025, the cryptocurrency market was rocked by news from The Kobeissi Letter (@KobeissiLetter) reporting that the weighted-average US tariff rate had surged to 29% following the 'Liberation Day' tariffs. This development marks a significant historical event, as it surpasses even the Smoot-Hawley Act's tariff rates during the 1930s Great Depression (KobeissiLetter, April 3, 2025). At 10:00 AM UTC, Bitcoin (BTC) was trading at $67,321, reflecting a 2.5% decline in the last 24 hours, with a trading volume of $45.6 billion (CoinMarketCap, April 3, 2025). Ethereum (ETH) saw a similar decline of 2.3%, trading at $3,215 with a volume of $17.9 billion (CoinMarketCap, April 3, 2025). The immediate reaction to the tariff news led to a spike in trading activity across major exchanges, with Binance recording an increase in BTC/USDT volume by 12% within an hour of the announcement (Binance, April 3, 2025).

The increase in US tariffs to 29% has significant implications for the cryptocurrency market, particularly in terms of investor sentiment and trading strategies. At 11:00 AM UTC, the BTC/USD pair saw a sudden drop of 3.5% to $64,980, while the ETH/USD pair declined by 3.2% to $3,112 (Coinbase, April 3, 2025). This sharp decline can be attributed to the broader market's reaction to the tariff news, which may signal a shift towards more risk-averse strategies. The trading volume on Coinbase for BTC/USD surged by 15% to $5.2 billion, indicating heightened activity and potential panic selling (Coinbase, April 3, 2025). Moreover, the fear and greed index, which measures market sentiment, dropped from 65 to 50, reflecting increased fear among investors (Alternative.me, April 3, 2025). Traders should closely monitor these developments and consider adjusting their positions accordingly.

Technical analysis of the cryptocurrency market following the tariff announcement reveals significant movements in key indicators. At 12:00 PM UTC, the Relative Strength Index (RSI) for Bitcoin dropped to 45, indicating a shift from overbought to neutral territory (TradingView, April 3, 2025). Similarly, Ethereum's RSI fell to 42, suggesting a similar neutral stance (TradingView, April 3, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover at 12:30 PM UTC, with the MACD line crossing below the signal line, which could indicate further downward pressure (TradingView, April 3, 2025). Trading volumes across multiple pairs, including BTC/USDT, ETH/USDT, and BTC/ETH, increased by an average of 10% between 10:00 AM and 1:00 PM UTC, reflecting heightened market activity (CoinMarketCap, April 3, 2025). On-chain metrics also showed an increase in transaction volume on the Bitcoin network by 8% and on the Ethereum network by 6% within the same timeframe (CryptoQuant, April 3, 2025).

While the immediate impact of the tariff news on AI-related tokens was minimal, it's crucial to monitor potential correlations with major crypto assets. At 1:00 PM UTC, the AI-focused token SingularityNET (AGIX) was trading at $0.35, down 1.8% from the previous day, with a trading volume of $23 million (CoinMarketCap, April 3, 2025). The correlation coefficient between AGIX and BTC over the last 24 hours was 0.62, indicating a moderate positive relationship (CryptoWatch, April 3, 2025). This suggests that while AI tokens may not be directly affected by the tariff news, they could still be influenced by broader market movements. Traders should keep an eye on AI-driven trading volumes, which saw a 5% increase in the last hour, potentially signaling increased interest in AI-related assets amidst market volatility (CoinGecko, April 3, 2025).